XRP Faces Market Pressure Despite Landmark ETF Approval

The launch of spot exchange-traded funds for XRP by major financial institutions like Grayscale and Franklin Templeton should have sparked celebration among investors. This development represents a significant milestone for the cryptocurrency's institutional acceptance, providing both retail and institutional investors their first regulated access to XRP without direct custody requirements. Yet instead of the anticipated rally, the digital asset is experiencing substantial selling pressure and concerning price action.

While the structural developments appear positive, a deeper examination of network fundamentals reveals potential warning signs. On-chain data, which reflects actual network usage, shows notable deterioration over the past month. The volume of account-to-account payments has plummeted by 50%, indicating reduced demand for transaction processing.

More strikingly, daily transaction counts have declined substantially from previous levels of 1.2 to 1.5 million to approximately 686,000 currently. This sharp contrast to the explosive growth witnessed in October raises questions about the sustainability of network activity and has contributed to negative investor sentiment.

Price Action Contradicts Structural Progress

Currently trading around $2.06, XRP has declined nearly 18% on a monthly basis despite the seemingly positive ETF developments. This market weakness appears to be overshadowing potential catalysts. Market experts suggest that many participants may have already priced in the ETF approval, leading to profit-taking amid ongoing cautious market sentiment.

The investment flow data presents a conflicting picture: XRP-focused investment products recorded substantial inflows of $90 million last week, representing a rare positive signal in a market environment otherwise characterized by significant capital outflows. This divergence between fund flows and price performance highlights the complex dynamics currently affecting the asset.

Should investors sell immediately? Or is it worth buying XRP?

Strategic Shift May Address Persistent Concerns

Beyond price movements, Ripple's Chief Technology Officer David Schwartz has announced a strategic initiative that could alleviate one of investors' primary concerns: selling pressure from Ripple itself. The introduction of the RLUSD stablecoin is designed to create independent revenue streams for the company.

This approach aims to reduce Ripple's historical dependence on selling portions of its XRP holdings to fund operational expenses. If successful, this strategy could gradually diminish the chronic selling pressure that has frequently weighed on XRP's price, potentially creating more stable market conditions over the long term.

Market Outlook

XRP finds itself in a contradictory position. While achieving the long-awaited regulatory and institutional validation through ETF approval, the cryptocurrency simultaneously faces concerning fundamental metrics indicating declining usage. In the near term, caution prevails as large investors ("whales") contribute to selling pressure, but the structural changes being implemented could potentially establish a foundation for future stability.

Market participants will be closely monitoring whether XRP can maintain support above the psychologically important $2.00 threshold as these competing factors continue to influence price direction.